Should you buy organic food company stock in a slow economy? Many financial advisers believe that the answer to that question is a resounding, "Yes!"
Buying Organic Food Company Stock
Stock values are based on many factors. However, the value of a stock is directly related to how profitable a company is. In a slow economy, consumers tend to spend less money and stock values drop as a company's profits drop.
Some stock tends to be stable. These stocks are from companies that provide goods and services that people need regardless of how much money they have to spend. Groceries of all kinds are a good example of this. No matter how little money someone has, some of it is going to be spent on food. People will always tend to spend more money on items they feel will keep them healthy and energetic. According to SmartMoney, this has proven true in the last four recessions.
Check the Company
You should decide on a company you like and just head out and buy the stock, right?
Not necessarily. If you want to buy organic food stock, but you have issues with the practices of some of the big companies like Proctor and Gamble, Kraft, and others you should know that many of the small, organic companies have been bought up by the big conglomerates over the past few years.
It even gets a bit more complicated than that. A large corporation can control an organic company without owning it outright if it owns enough of the company stock. When it comes down to it, many of the organic brands you love are controlled or owned by the big companies. Some of them are:
- Phillip Morris (Kraft)
- General Mills
You can find a great chart of which corporation owns which small company at The Incorporation of the Organic Food Industry. There is a table with the various companies, who owns or controls them, and links to important information.
Some Organic Companies to Consider
So, you just got a thousand dollar bonus and you are ready to take on Wall Street and buy some organic stocks. Where do you start?
It is always a good idea to research the company that you are interested in to see how their stocks have done historically. You may also want to buy your stocks through a good adviser so that you can get his or her views based on education and experience. The following are some companies that may be worth considering, although some of the companies listed do have links with the big corporations:
|Whole Foods Market||WFMI||N/A||No|
Because so many organic food companies have been sold to large corporations in the past ten years, it is almost impossible to invest directly into one of these companies. For example if you want to invest in Morningstar Farms, you will have to buy Kellogg's stock.
You may be able to get more information on small organic companies that are going public at the Organic Trade Association website.
Other Green Stocks
While it is obviously difficult to buy organic food company stocks, that doesn't mean that you can't invest green. There are many companies in the marketplace making huge steps forward in green, eco-friendly industry.
Some websites that can help you get the information you need are:
It is important to do your research when you are investing in any stock, but this is especially true in when it comes to organic stocks. Big corporations often eschew Fair Trade and other important practices associated with green, socially responsible investing. If you want to stay away from that, you will need to thoroughly research the company you are interested in>.